Agenda - Council - 07/14/2020 - Laserfiche WebLink

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It is proposed that Capstone Homes contribute $182,021.01 for the 38.97 net acres of real property they own fronting Puma Street. It is proposed that Paxmar/AKM Farms contribute $142,795.31 for the 30.50 acres of real property they own fronting Puma Street. Capstone Homes has requested that the City assess them for the share of project costs benefiting their property. Conversely, Paxmar/AKM Farms does not support being assessed at this time so the Chapter 429 assessment process must be followed, including the Assessment Hearing on October 13, 2020. However, since assessments will not be paid in advance and will instead be paid over time, the City must fund all of the improvements up front. This will include project costs for trunk municipal utilities construction, which total $290,392.55 based on the low bid, as well as project costs for street and trail construction, which total $487,185.09 based on the low bid. Since these costs may change based on actual construction costs Staff recommends requesting $490,000 in ACHRA funds. Trunk municipal utilities project costs will be paid through City sewer and water funds. The developer's share of these costs will be recovered through development trunk fees. Funding sources available to the City to pay for street and trail project costs include Anoka County Redevelopment Authority (ACHRA) funds, Public Improvement Revolving (PIR) funds, and Municipal State Aid (MSA) funds. Staff proposes to use ACHRA funds since MSA funds will be in high demand to cover future MSA street overlay and reconstruction project costs plus eligible improvements along Highway 10, and PIR funds are identified as a funding source for numerous Capital Improvement Plan improvements. According to Anoka County the City's current ACHRA fund balance is $1,401,903.59 (not including first half 2020 property tax settlement), which is sufficient to cover the street and trail project costs. Staff is working with Capstone to finalize their assessment payment plan. The assessment payment plan for Paxmar/AKM Farms will be formalized at the time they develop their property. The details of all assessment payments will be discussed at the Assessment Hearing on Tuesday, October 13, 2020. Recommendation: Staff recommends alternative #1 to support current and continued development in the area. Action: Motion to adopt Resolution #20-141 authorizing Staff to request $490,000 in Anoka County Housing and Redevelopment Authority funds for street and trail project costs for Puma Street Improvements, Improvement Project #20-04. Resolution 20-141 Project Cost Sharing Attachments Form Review Inbox Reviewed By Date Kurt Ulrich Kurt Ulrich 07/09/2020 11:44 AM Form Started By: Bruce Westby Started On: 06/30/2020 11:19 AM Final Approval Date: 07/09/2020